Personal loan is an unsecured loan for personal use that does not require any security or guarantee and can be used for any purpose, whether an expense of the wedding, party or buying consumer durables, personal loan is very useful and caters to all your needs. The loan amount can be varied between Rs. 50000 - Rs. 20 lakh and tenure for the loan ranges from 1 to 5 years. More information about the items of personal loans, click on the section of personal loans and personal loans should read.

Nationalized banks have obtained personal loan products in which security or collateral requested in private banks and just watch your income and track payment. Interest rates on personal loans after increasing by the RBI have stabilized in the range 15% -30%. They were as low as 13% -28% for about 6 months. The lowest rates are for customers working in the Top 5000 companies and have incomes above 75,000 per month.

Personal Loan Benefits

1. An unsecured loan, a personal loan is a secured loan (the bank does not require any security or collateral), compared to a secured loan when required to pledge a house or other collateral to get a loan.

2. Documentation simple: a personal loan can be accessed with a minimum of paperwork or documentation and does not take long to get, compared to a secured loan.

3. No specification on the end use of the loan amount: You are not required to disclose the end use of borrowed money, the banks are concerned that if the borrower can repay the loan with interest before the due date or and not confirmed by verifying income, employment or business of the borrower and other factors.

4. Large amount of loan: personal loan is a great way to meet loan requirements, you can take a loan ranging from Rs. 50,000 to Rs. 20 lakh.

Documents required for personal loans

The documentation process is very fast personal loan compared to secured loans. Following documents are required by financial institutions to process the loan application:

Identity of the test

3 to 6 months bank statements

Residence proof

Salary Slip

Guarantees and the same set of documents

In the case of self-employed banks require balance sheets, profit and loss account, partnership deed and other documents required, etc.

Loan Payment Formulae:

Criteria for personal loans by several banks

Banks offer personal loans to borrowers based on several factors such as income, employment, business continuity to ensure that the loan back with interest before the due date. The eligibility criteria for a personal loan is based primarily on the job profile of a loan applicant is divided into the following classes:

*Self-employed

* Employees

In addition to the above factors banks also consider other aspects such as age, work experience, the relationship with the bank`s ability to pay, etc.

To find the eligibility criteria across different banks according to the above parameters, has brought in Deal4Loans Eligibility Criteria for Personal Check borrowers.

Check reproducibility Rating: You should know your credit history plays an important role in the acceptance of your loan application and reproducibility keeps track of credit histories by collecting data from various financial institutions credit. A decent credit score not only gives a green signal to your loan application, but also offers low interest rates by the bank.

Penalties: If you intend to close your loan before, this will invite per-payment charges imposed by the bank are up to 5% of the outstanding loan amount. Some banks have this rule that is not allowed to close your loan in the first six months of your loan. You should also know about the positions taken by the bank to pay your EMI later.